13 Nov 2019 Individuals who look after both children and elderly parents, described as being part of the ‘sandwich generation’, are struggling the most to save money, according to Aldermore’s Annual Saving’s Tracker research.
Almost a third (32%) of individuals who have adult children living at home and who care for elderly parents, are unable to save money, the highest proportion of non-savers of any group.
On average, last year individuals within the ‘sandwich generation’ saved 7% of their annual income, a measure known as the savings ratio. In comparison, the population on average saved 9%.
Aldermore says that saving even small amounts of money can be hugely beneficial for individuals in later life, especially when they come to retire. Such is the stress of being stretched financially that one in five individuals within the sandwich generation say they are kept up at night worrying about their lack of savings.
Many within the sandwich generation for instance (35%) are worried their children are not saving enough with 78% believing it is their responsibility to teach them the importance of saving.
Not only are parents educating their children about money, they are also tangibly helping them too. 28% of parents aged 45-54, regularly give their children money to help them save, while one in four (25%) have helped or plan to help their children with a deposit on their first home.
Ewan Edwards, Head of Savings at Aldermore comments: “Many individuals are finding their finances stretched wafer thin by supporting both their children and elderly parents.”
“Added to the difficulty for people is having their children still living in the family home after the age of 18, which can often place a further financial strain if they are not yet working.”
“We find it is concerning that such a high percentage (34%) of this group feel they are unable to save enough to ensure a stable financial future. It is crucial that when facing such demands, people prioritise their financial security and make small changes to their savings habits, in order to provide protection for their own future.”
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